Blind Bidding Law & Legal Definition

Blind Bidding refers to the practice by film distributors of requiring theatre owners to bid for and book a movie without seeing it. This takes place during the licensing of movies for first-run engagements. Some states prohibit blind bidding by statutes. Several states and localities require open trade screenings for each new release.

Example of a State Statute on Blind Bidding.

O.C.G.A. § 10-1-292 defines Blind Bidding as follows:

(2) "Blind bidding" means the bidding for, negotiating for, or offering or agreeing to terms for the licensing or exhibition of a motion picture at any time before the motion picture has either been trade screened within the state or before the motion picture, at the option of the distributor, otherwise has been made available for viewing within the state by all exhibitors from whom the distributor is soliciting bids or with whom the distributor is negotiating for the right to exhibit the motion picture.

O.C.G.A. § 10-1-293, prohibits blind bidding in Georgia. The section reads as follows:

§ 10-1-293. Blind bidding prohibited; trade screening required; notice of screening; waivers void

(a) Blind bidding is prohibited within the state. No bids shall be returnable, no negotiations for the exhibition or licensing of a motion picture shall take place, and no license agreement or any of its terms shall be agreed to, for the exhibition of any motion picture before the motion picture has either been trade screened or before the motion picture, at the option of the distributor, otherwise has been made available for viewing within the state by all exhibitors from whom the distributor is soliciting bids or with whom the distributor is negotiating for the right to exhibit the motion picture.

(b) A distributor shall provide reasonable and uniform notice of the trade screening of any motion picture to those exhibitors within the state from whom he intends to solicit bids or with whom he intends to negotiate for the right to exhibit that motion picture.

(c) Any purported waiver of the prohibition against blind bidding in this article shall be void and unenforceable